Choosing Your Offshore Jurisdiction
A Side‑by‑Side Guide to
The Bahamas · BVI · Cayman Islands · Panama · Delaware (USA)
Choose the best jurisdiction for your hedge-fund, SPV or holding company with our side-by-side expertise across the Cayman Islands, British Virgin Islands, Bahamas, Panama and Delaware (USA). Each locale offers unique blends of zero-tax efficiency, investor-friendly regulation and rapid company formation—from Cayman’s institutional-grade fund ecosystem and the BVI’s cost-effective Business Companies to the Bahamas’ SMART/ICON flexibility, Panama’s territorial tax regime and Delaware’s renowned Court of Chancery. Explore our jurisdiction guides to compare setup time-frames, annual fees, privacy rules and substance requirements, then leverage our turnkey service to incorporate or launch a fund in as little as 24 hours—fully compliant, bank-ready and optimised for global capital-raising.
1 | Quick‑View Comparison
Jurisdiction | Core Entity | Formation Time* | Annual Govt. Fee** | Tax on Foreign Income | Public Ownership? | Typical Use Case |
|---|---|---|---|---|---|---|
Bahamas | International Business Company (IBC) | 24 hrs | US $350 | 0 % | No | Holding, fintech, family office |
BVI | Business Company (BC) | 24–48 hrs | US $550 (≤ 50k shares) | 0 % | Directors (private search) | Trading, start‑up feeder, IP |
Cayman | Exempted Company | 24–48 hrs | US $854 | 0 % | Directors (public) | Hedge‑fund platform, SPV |
Panama | IBC / Private Interest Foundation | 24–48 hrs | US $300 (IBC) | Territorial (0 % on foreign) | No | Asset‑holding, estate planning |
Delaware (US) | LLC / Corporation | Same‑day | US $300 (LLC) | None at state level; Fed depends | BOI to FinCEN (non‑public) | On‑shore feeder, SaaS start‑up |
*Assumes all KYC provided.
**Government/licence fee, excluding registered‑agent cost.
Cayman’s annual fee is the highest owing to its “premium” fund ecosystem, while BVI and Delaware remain the most cost‑efficient.
2 | Jurisdiction Snapshots
Bahamas
- Tax‑neutral common‑law base; swift IBC formation.
- Digital‑asset friendly (DARE Act); attractive for crypto ventures.
- Non‑public shareholder registers preserve privacy.
British Virgin Islands (BVI)
- Light regulatory touch; widely recognised by global banks.
- 2023 annual‑financial‑return rule adds modest reporting but keeps costs low.
- Ideal for friends‑and‑family funds, SPVs and IP boxes.
Cayman Islands
- World’s premier hedge‑fund domicile with deep professional ecosystem.
- Higher fees offset by investor confidence and first‑class courts.
- Robust economic‑substance regime with practical carve‑outs for pure holding companies.
Panama
- Territorial tax system—foreign income 0 %; strong banking sector.
- Law 254 (2021) now requires accounting‑record location notices, but filings stay private.
- Private Interest Foundation adds flexible, civil‑law style asset‑protection layer.
Delaware (USA)
- On‑shore credibility; Court of Chancery for corporate disputes.
- LLCs pay a flat US $300 franchise tax; corporations can scale with share structure.
- Corporate Transparency Act (2024) requires beneficial‑ownership reporting to FinCEN, but database is non‑public.
3 | Key Selection Factors
Factor | Questions to Ask |
|---|---|
Investor Optics | Will institutional LPs prefer Cayman over BVI? Do US investors balk at Panama? |
Cost & Compliance | Is the higher Cayman annual fee justified by brand value? |
Privacy | Are non‑public shareholder registers (Bahamas, Panama) critical for the principals? |
Banking Access | Does your strategy need a Tier‑1 custodian (Cayman) or is a regional bank sufficient (BVI, Bahamas)? |
Tax Residency & Substance | Can you meet ES tests locally, or should you choose Delaware to avoid offshore substance rules? |
Future Expansion | Will you upgrade to a fund structure (Cayman/BVI) or add a Private Foundation (Panama) later? |
4 | How We Help
- Jurisdiction‑Fit Memo – side‑by‑side comparison tailored to your tax profile, banking needs and budget.
- Turnkey Incorporation – 24‑hour formations in all five jurisdictions with bespoke constitutional documents.
- Compliance Road‑Map – annual filings calendar, economic‑substance diagnostics, BO reporting reminders.
- Integrated Upgrades – seamless transition to hedge‑fund, SPV or foundation structures under one fee.
Ready to Pick Your Jurisdiction?
Book a 20‑minute strategy call and receive a personalised, data‑driven recommendation.